Mumbai: On November 12, Indian stock markets saw a robust rally. The Sensex rose over 700 points in early trade, while Nifty crossed the 25,900 mark. Market experts attribute this surge to positive investor sentiment fueled by exit polls in Bihar showing an NDA lead and growing expectations of a trade deal between India and the United States. Broad-based buying was observed across sectors.
By around 1:42 PM, the Sensex was trading 736.37 points, or 0.88 percent, higher at 84,607.69, while the Nifty gained 221.65 points, or 0.86 percent, reaching 25,916.60.
Optimism Over India-US Trade Deal
Investors were encouraged by statements from US President Donald Trump indicating that a trade agreement with India is nearly finalized. Trump noted that the deal would be significantly better than previous proposals. Following these remarks, foreign investors increased their purchases in Indian markets, further strengthening sentiment.
Political Stability from Bihar Exit Polls
Sentiment was also supported by Bihar exit polls, which suggested a clear majority for the NDA alliance led by BJP-JD(U). Analysts believe this enhances expectations of political stability, a positive signal for investors. VK Vijaykumar, Chief Investment Strategist at Geojit Investments, noted that optimism about a fast-tracked India-US trade deal and NDA’s favorable exit poll results has created a bullish environment, though it is too early to confirm long-term sustainability.
Global Cues and End of US Government Shutdown
International factors further boosted investor confidence. The US Senate approved a bipartisan deal to end the longest government shutdown in history, increasing global risk appetite. Asian markets were mixed, with South Korea’s Kospi and Hong Kong’s Hang Seng trading in green, while Japan’s Nikkei 225 and China’s Shanghai Composite saw minor declines. Strong gains in US markets also provided support for Indian equities.
Falling Crude Oil Prices Provide Relief
Brent crude prices fell 0.23 percent to USD 65.01 per barrel, offering relief to India by reducing import costs and easing inflationary pressures. Lower crude prices, combined with positive domestic and global factors, helped sustain today’s market rally, driving Sensex and Nifty higher.
